Avalanche’s [AVAX] Q1 performance was not the best; will Q2 be any different? 

• Avalanche’s revenue denominated in AVAX steadily increased by more than 10% QoQ. 
• In Q2, a massive growth was noted in terms of the number of stakers.

Messari published Avalanche’s [AVAX] quarterly report on 2 May, highlighting how the blockchain performed during Q1 2023. A key takeaway was that AVAX’s market cap rebounded along with the broader market, increasing 65.8% quarter-on-quarter (QoQ). 

https://t.co/CqBugRQ9W1

— Messari (@MessariCrypto) May 2, 2023

Read Avalanche’s [AVAX] Price Prediction 2023-24

Avalanche’s Q1 performance in a nutshell 

In terms of active users, Q1 was not the best for the Avalanche network, as it registered a decline. Avalanche’s daily average active addresses across the C-Chain and subnets declined by 20.7% QoQ.

However, it should be considered that the decline was noted as there was an unusual surge in active addresses in Q4, driven by a rise in NFT minting. If the spike is omitted, then the number of active addresses was stable. 

Source: Messari

A positive development in Q1 was that Avalanche’s revenue increased. To be precise, the network’s revenue denominated in AVAX steadily increased by more than 10% QoQ.

The increase in revenue was largely due to an 18.2% increase in transaction fees, which came from the network experiencing moments of instability during the concluding weeks of the last quarter.

Avalanche’s state in DeFi 

The blockchain’s performance in the DeFi space was not the best in Q1 either, as its network value declined. Avalanche’s TVL denominated in AVAX declined by more than 34%.

Nonetheless, it was interesting to note that the TVL, when denominated in USD, rose by 4%. As per Messari’s report, this incident suggested an asset price increase in USD rather than a new capital inflow. 

Source: Messari

NFT ecosystem suffered losses

Quite a few interesting developments happened in Q1 that looked optimistic for Avalanche’s NFT space. For instance, OpenSea announced support for Avalanche, and Joepeg’s NFT marketplace raised $5 million to invest in its operations.

Though these updates were positive, things did not reflect on the ground as Avalanche’s NFT space declined in secondary sales volume by 31.6% QoQ. Additionally, the number of unique NFT buyers also went down by 9.8% in Q1.

Source: Messari

Q2 brings good news

A major boost was registered in terms of staking in Q2. Staking Rewards’ data revealed that the number of AVAX stakers increased by more than 103,768% in the last 30 days. At press time, there were over 82,000 stakers. 

Source: Staking Rewards

Like Q1, Avalanche’s active addresses were stable so far in Q2, except for a dip on 27 April 2023. As per Artemin, AVAX’s daily transactions also increased last month, which indicated increased usage. 

Source: Artemis

AVAX Development activity on fire

Since the beginning of Q2, AVAX’s development activity increased considerably. This was optimistic, as it reflected developers’ efforts to improve the network. Its social volume was also relatively high, indicating its popularity in crypto space.

AVAX’s demand in the derivatives market also remained stable, as evident from a predominantly green Binance funding rate.

Source: Santiment

Realistic or not, here’s AVAX market cap in BTC‘s terms

Not to mention, the bear market affected AVAX’s performance on the price front, which plummeted during Q2.

However, things were starting to change, as at press time, AVAX’s price increased marginally over the last 24 hours. According to CoinMarketCap, the token was trading at $16.72 with a market capitalization of more than $5 billion.